Williams Underwriting Group, Inc. was chosen as the program administrator for a group professional liability policy underwritten by National Union Fire Insurance Company of Pittsburgh, Pa., Inc. (National Union), a subsidiary of American International Group, Inc. (AIG).

The group policy is available to each licensee with no right on the part of  National Union to cancel coverage for any licensee during the policy period, other than as set forth by Commission rules and regulations.

The group policy provides the professional liability protection for covered loss that results from the conduct of your duties as a real estate licensee including real estate appraisal services when conducted by an active real estate licensee.  The policy is a claims-made insuring agreement.

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Highlights of the group program include:

• A group E&O policy covering all real estate licensees that pay the required premium.
• A policy period of January 1, 2008 to January 1, 2009.
• Choice of Limits - Minimum State mandatory limits $100,000/$300,000 or optional limits of $250,000/$750,000 or $500,000/$1,000,000.  Defense expenses are paid in addition to the limits of liability.  The limits apply per license.
• Deductible is $1,000 per wrongful act.  Each licensee pays this deductible.  There is no deductible for defense expenses.
• Lock box property damage limit of liability is $10,000 total limit. There is no deductible for Lock Box coverage.
• $25,000 sublimit, damages and expense, for Fair Housing Discrimination subject to a $1,000 per claim deductible.
• Personal Injury liability - as determined by your choice of limits, referenced in the third bullet above.
• Coverage for the sale of or listing of your primary or principle residence provided the sale or listing is performed under the real estate license laws of Nebraska.  (coverage does not include For Sale By Owner sales or listings.)
• Allows up to 25% ownership/financial interest in the management or sale of property that is owned, built or developed by an insured or spouse of an insured.
• 90 day limited reporting period after policy expiration.
• Two Extended Reporting Period Endorsements are available to licensees who do not renew their coverage under this policy.  This endorsement extends the time to report certain claims alleging wrongful acts that are committed before the end of the policy period, but not before your retroactive date.  The claim must be reported during the applicable extended reporting period.  This endorsement does not extend the policy period or change the scope of coverage provided.
• Coverage for certain "prior acts" if the insured has had similar claims-made coverage continually in force up until the time coverage begins under this policy.
• Coverage conforms to conditions of other mandatory states E&O requirements.

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Summary of Policy Exclusions:

• Bodily injury, property damage, advertising injury.
• Dishonest, fraudulent, criminal acts - etc.
• Conversion, misappropriation, failure to pay fees, etc.
• Violations of securities laws.
• Failure to maintain insurance or bonds.
• Discrimination, employment related practices.
• Pollutants including fungi/mold.
• Asbestos, radon and lead.
• Other business.
• Contractual agreements.
• Claims made by an insured.
• Financial interest (appraisal, management or sale of property that is owned, built or developed by an insured or spouse of an insured who has over a 25% ownership interest in said property).

Insurance underwritten by National Union Fire Insurance Company of Pittsburgh, Pa., a member company of AIG.  The above descriptions are a summary only.  It does not include all terms, conditions and exclusions of the policy described.  Please refer to the actual policy for complete details of coverage and exclusions. 

1. Are all real estate licensees required to buy coverage under the group policy?
NO.  Licensees who do not desire coverage under the group policy may purchase insurance coverage on an individual basis.  However, all licensees obtaining coverage other than that provided by the group policy must submit proof of coverage to the Nebraska Real Estate Commission, and all coverage must meet the minimum equivalency requirements as established by the Commission.
2. How do I obtain coverage under the group policy?
Simply complete the enclosed enrollment form, per instructions -or- you may enroll on-line at www.wugieo.com and pay with Visa, Mastercard or Discover.  Online enrollment is subject to a $5.00 convenience fee.
3. What is the cost of  coverage under the group policy?
The fully earned annual premium for each licensee for the minimum NREC required limits of $100,000/$300,000 is $135.00 per license.  Please refer to premium schedule for optional limit premium.  The premium for any limit chosen will be prorated by month of enrollment after January 31.  Please refer to premium schedule.
4. Can I obtain coverage under the group policy for my Firm?
YES, Firms which are registered with the NREC may purchase this coverage just as an individual may.  Simply fill out the form in the Firm's name indicating the choice of limits and submit the proper premium as instructed.  Or, you may go online and enroll your Firm when you enroll yourself.
5. How do I obtain an Extended Reporting Period Endorsement?  Simply mail within ninety (90) days of the expiration of your policy your request and payment to Williams Underwriting Group to have issued either a three (3) year or five (5) year Extended Reporting Period Endorsement.  The additional premium for the three (3) year extended reporting period is 200% of your expiring annual premium.  The additional premium for the five (5) year extended reporting period is 300% of your expiring annual premium.  In all cases, your request and payment for either endorsement must be received by our office no later than March 31, 2008.  We will not accept postmarks subsequent to this date to purchase this endorsement.

WARNING!

Licensees who do not obtain an E&O policy by January 31, 2008 will lose any previously established retroactive date (prior acts coverage).  Your new effective and retroactive date will be the 1st of the month in which your payment is received.  Further, if you do not renew your insurance on time, your license will be placed on inactive status by the Nebraska Real Estate Commission.

6. Where does coverage apply?
For resident Nebraska licensees including non-resident licensees who work for or represent a real estate firm licensed and located in Nebraska, the policy applies to wrongful acts - as defined in the policy - that are committed in the coverage territory as defined in the policy.  (all claims must be brought in United States, its territories or possessions, Puerto Rico or Canada.)  For non-resident Nebraska licensees who do not work for or represent a real estate firm licensed and located in Nebraska, the policy responds to wrongful acts - as defined in the policy - committed only within the state of Nebraska.
7. When must claims or potential claims be reported?
If an incident happens that may involve liability protection provided by this policy the incident must be reported as soon as possible during the policy period or during an extended reporting period in order for coverage to apply.  Please refer to the policy for specific claim reporting procedures.
8. Where do licensees report claims?
Licensees must report all claims or potential claims (as defined in the policy) immediately to the company.

FAX OR MAIL TO:  

AIG Domestic Claims

175 Water Street

8th Floor

New York, NY  10038

Attn: Robert Hershkowitz

Ph:  212-458-2028 (Direct)

Ph:  877-867-3783 (Toll Free)

Fax:  866-830-3675

E-mail:  Robert.Hershkowitz@AIG.com

 

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New license applicants or licensees joining the group program after January 31, 2008 will be required to pay the following premium amount that corresponds to the month you wish to obtain coverage and the limits of liability chosen.
 

NOTE:  In order to notify the NREC of your compliance with the Statute for 2008, we must receive your mandatory payment -or- the optional payment and the enrollment form prior to November 30, 2007.  Licensees submitting forms and payments after November 30, 2007 will continue to be certified to the NREC.  However, the NREC may impose a late license renewal fee and/or place your license on an inactive status if they do not receive E&O coverage certification by December 1, 2007.

OPTIONS

Limits available up to $1,000,000/$3,000,000 with choice of deductible starting at $1,000.

The deductible only applies to claims which would not otherwise be covered by the primary limits.

This Coverage is available only to firms whose licensees are covered under the group policy as issued by the Insurance Company.

• Failure to detect pollutants with limits up to:

$1,000,000 residential

$100,000 commercial

Paid claim and/or defense

• Discrimination - $100,000 sublimit.

Paid claim and/or defense

• Defense of Regulatory Complaints: $5,000/$10,000
• First dollar defense - unlimited.
• Includes coverage for Franchise Grantor.

Optional Coverage

1. Sale of owned property.